Gold/Oil Ratio Falls to 3-Decade Average as Trump ‘Ready to Quit WTO’

GOLD FLIRTED with its lowest weekly close since start-December but crude oil rose yet again Friday as US foreign policy spurred fears over global energy supplies, while a separate report claimed that President Trump wants to quit the World Trade Organization.

Gold bounced $5 per ounce from a new 7-month low of $1246 as the Dollar eased back on yesterday’s near-12 month highs on the FX market.

The Euro meantime jumped after a meeting of the European Council ended at dawn in Brussels with what French president Emmanuel Macron called ” a coherent approach to the migratory phenomenon”, promising extra money to Turkey and North African countries to try and stem illegal migration, plus a series of secure detention centers in southern EU states.

With UK Prime Minister Theresa May meeting her cabinet this weekend in the hope of finalizing a Brexit strategy on which the Government has so far “made no progress” according to one un-named minister, ” Huge and serious divergence remains” between London and its soon-to-be-ex-partners, said the EU’s chief negotiator Michel Barner today, “in particular on Ireland and Northern Ireland.”

“It would totally [screw] us as a country…[but Trump says] the WTO is designed by the rest of the world to screw the United States.”

Despite a bounce in the Chinese Yuan from yesterday’s new 7-month lows versus the Dollar, Shanghai gold premiums fell to end the week offering an incentive of just $5 per ounce for new bullion imports to China, the No.1 gold consumer nation.

India’s Rupee also rallied, recovering from new all-time lows against the Dollar and helping ease domestic gold prices in the No.2 consumer nation 1% lower from last weekend’s level and almost 5% below last month’s 2-year highs.

Asked about the Rupee’s plunge, “Knee jerk reactions are not called for,” said New Delhi’s finance minister Piyush Goyal to reporters today.

“There is modest rise in demand from jewelers,” Reuters quotes a bullion wholesaler in Kolkata, “but still gold is trading at a discount” to official import prices – which include 10% duty – of around $2 per ounce.

Bullion.Directory or anyone involved with Bullion.Directory will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading in precious metals. Bullion.Directory advises you to always consult with a qualified and registered specialist advisor before investing in precious metals.

FREE REPORT: 5 "Tells" that the Metals Markets Are About to Reverse

Jump on once-in-a-lifetime opportunities and avoid dangerous pitfalls no one else sees coming.

We can help you prepare for opportunities and side step risks that will surprise most investors. The insights that you'll gain are especially applicable to the price patterns of key financial markets, including precious metals and the stock market now.

Material provided on the Bullion.Directory website is strictly for informational purposes only. It is not intended as financial, or investment advice and must not be relied upon as such. Precious metals carry risk and investors requiring advice should always consult a properly qualified advisor. Bullion.Directory, it's staff or affiliates do not accept any liability for loss, damages, or loss of profit resulting from readers investment decisions.

Opinions expressed in reviews, commentary and analysis are those of the author and are not necessarily shared by Bullion.Directory.
Screenshots, logos, company names & styles are IP, copyright and trademarks of their respective owners, used on this site for their promotion or editorial illustration.

COOKIE POLICY: This site uses cookies to improve our user experience. By using this website you agree to accept cookies in line with our cookie policy.

INVESTMENT DISCLAIMER: Material provided on the Bullion.Directory website is strictly for informational purposes only. It is not intended as investment advice and must not be relied upon as such. Precious metals carry risk and investors requiring advice should consult a properly qualified advisor. Bullion, investment gold, and precious metal markets are unregulated markets, not covered by the Financial Conduct Authority with no requirement for registration under FCA rules.

FTC DISCLOSURE: In the interests of full transparency we are obliged to state "the operators of this website receive direct financial compensation from American Bullion, Bullion Vault, Cache Metals, GASFL, GoldBroker.com, Regal Assets, SilverGoldbull.com and Sprott Money. Not all content on this website, including positive reviews of these companies and other information, will always be independent or neutral", however strict company policy demands compensation does not influence user submitted ratings and reviews or editorial content, including reviews.